Archives: Blogs

The business case for building trust

The case for prioritizing trust building in any scenario is compelling. When compared with people at ‘low-trust’ companies, those at ‘high-trust’ organisations reported 74% less stress, 106% more energy at work, 50% higher productivity, 13% fewer sick days, 76% more engagement, 29% more satisfaction with their lives and 40% less burnout. Trust is a powerful thing! Leaders who want their employees to have a great ‘employee experience’ and be fully engaged know how trust plays a vital role in achieving this goal.

What makes trust building in a virtual environment more challenging? When someone is physically absent the amount of data you have on them is significantly reduced. This is especially true of someone who is introverted and tends to isolate themselves. Often false assumptions and negative judgments based on distance and lack of communication lead to conflict and unnecessary stress.

The Trust Equation

On the topic of distance and what a negative impact it can have, it is worth mentioning Professor David Maister’s simple yet brilliant model he calls ‘The Trust Equation’. Trustworthiness comprises four elements – Credibility, Reliability, Intimacy and Self-Orientation. The striking insight to be gained here is that someone can be good at the first three but if they are very self-centered and focused on themselves more than the person they are managing they can negate any trust built by the other three elements.

As you read the Best Practices (below) and (further on) the Characteristics of a Leader you can Trust, you can see that each item, in varying degrees, is about the leader having an outward focus, about serving ‘the other’ versus ‘the self’.

Best practices

Have a private one hour lunch conversation. I say one hour because such a potentially important conversation warrants this time! When I used to coach senior executives invariably this was the most effective tool for building trust. Even if the relationship is virtual you should prioritize an in person conversation whenever possible.

Schedule regular one to one Zoom calls. Again, allocate sufficient time for a deeper dialog if appropriate.

Recognize achievements.

Support employee’s well being. This means respecting and supporting the individual in all aspects of their lives and not just work.

Be authentic. Be willing to be transparent, ‘self disclose’, and self-deprecating. These subsets of authenticity make the leader more approachable and accessible, and enable the employee to feel happy to pick up the phone versus avoid or procrastinate.

Reflection

Let’s pause for a moment and think of a leader, past or present, who has proven to be trustworthy. What behaviors demonstrate(d) this? As an example I have been working with a CEO for the past few years who recognizes my strengths and trusts me to work virtually while putting my energy wholeheartedly into work. Her trust in me gives me the freedom to flourish and is a great motivator. 

Next, think of an individual or group scenario, past or present, in which trust has broken down. What restored trust in that scenario? (If anything!). Have you ever been instrumental in restoring trust and, if so, how did you do it?

Real trust versus regulatory trust

The following is a powerful and critical distinction which you may have not considered. I certainly hadn’t until I read this article by Professor Sir Chris Ham of the King’s Fund. Among other themes it highlights the role of a positive culture in creating a trusting environment.

In 2006 Ed Smith, at the time Chair of NHS Improvement in the UK, wrote an article with Richard Reeves, in which he reminded his audience of the pernicious impact of excessive regulation. In their paper, Smith and Reeves contrast ‘regulated trust’ with ‘real trust’ which is based on a belief that people have a strong intrinsic motivation to perform to the best of their abilities. They argue that real trust is not fostered through reliance on rules but rather through the development of positive organizational cultures that encourage risk taking and avoid blame.

These cultures support people to act in a way that is trustworthy and to do the right thing. They encourage ‘behaviors and instincts’ that enable people to behave with integrity at all times. Positive cultures take time to develop and require sustained effort by leaders and followers at all levels. Rules and regulations designed to increase trust all too often have the opposite effect, resulting in over reliance on compliance rather than the nurturing of commitment. Real trust cannot be mandated and emerges through the actions of leaders who create the conditions in which people are supported to be effective.

Now let’s turn to an example of real trust in action and the results that created. Brazilian business visionary, Ricardo Semler is the former CEO and president of Semco, which under his leadership grew from $4 million in revenue to over $160 million in about 20 years. All of this without a mission statement, an org chart, or any written policies at all. And definitely without a rulebook!

So, what was the key to Semco’s success? One could point to various features of the radical industrial democracy that Semler ushered in during his tenure. But Semler himself epitomized it in his 2014 presentation at TED Global:

“We looked at it and we said, let’s devolve to these people, let’s give these people a company where we take away all the boarding school aspects of, this is when you arrive, this is how you dress, this is how you go to meetings, this is what you say, this is what you don’t say, and let’s see what’s left. And so, the question we were asking was, how can we be taking care of people? People are the only thing we have.”

I strongly recommend you dig deeper into the ways Semler built a culture based on trust and the performance miracles that resulted from this radical and bold approach.

Characteristics of a leader you can trust

You can be critical of her/him and not be punished

The leaders welcomes differences of opinion

You are fully listened to

They treat you as a whole human being – you can be honest safely about your private life as well as your professional life

You are not micromanaged

The inner work that must be done

Finally, there are the external behaviors that build trust and then there is the internal state that allows trust to grow and flourish. It is a leader’s duty to focus on their personal development as they take on more responsibility. If you are a micromanager then you should look into why that is. Varying degrees of insecurity, even fear, can make it hard for the leader to let go of wanting to control all the time. So the leader must cultivate a trust in themselves which in turn allows for trust to build with those they lead. This takes self-awareness and the courage to move away from their comfort zones in service of a culture of trust. Being open and vulnerable as a leader gives permission to others to be the same. Authenticity leads to trust.

Michael Banks 

April 2023

.

.

.

.

.

If you want to know more about PeopleSmart and the services we offer reach out to us for a conversation: contact@peoplesmart.fr 

Definitions of EXP (Employee Experience) vary widely. Here are two recent examples.
“Employee experience encapsulates what people encounter and observe over the course of their tenure at an organization.”

“Employee experience (or talent experience to be specific), creates the conditions that unlock high
employee engagement. It sculpts an employee’s perception of their day-to-day work environment, culture and sense of purpose, which in turn influences their level of engagement.”

Nowadays most companies are espousing the idea that a positive EXP leads to enhanced business
performance and for good reason. It does!

When organizations get employee experience right, they can achieve twice the customer satisfaction and innovation, and generate 25% higher profits than those that don’t. – Culture Amp

An analysis of over 250 global organizations found companies that scored highest on employee experience benchmarks have four times higher average profits, two times higher average revenues, and 40 percent lower turnover compared to those that didn’t. – Culture Amp

In this article, I am not going to talk about certain key elements of EXP like the importance of onboarding,
providing development opportunities and tech systems that facilitate the easy transfer of information.
Rather I will focus on my personal experience of what constitutes a great EXP. My belief is that you know
when it’s great or not primarily by how you feel.

There are simple ways to determine the level of positivity in an organization. What’s the ‘atmosphere’ like
when you walk into the main lobby? Is it flat and dull or is there an aliveness and buoyancy in the air? When you walk through the offices are people smiling? Are conversations animated? Are they having fun? Is work enjoyable?

XP is about how employees FEEL. How do you feel when you visit the office? Are you welcomed warmly?
Are you happy to be there? What are some of the key elements?

So how do you create the right conditions for a fantastic EXP? I remember the Chairman of a global finance company smiling and saying ‘hello’ in the elevator to anyone, regardless of rank. He would also descend from the top floor and drop in at random to chat with an employee halfway down the 50-storey building. He took a genuine interest in his people, included them, and made them feel good. Staff at this company felt connected and part of the enterprise.

I’m sure we’ve all had both good and bad employee experiences. Rather than continue to talk about third-party facts, stats, and perspectives I’d like to share a couple of personal stories that illustrate both exemplary and negative employee experiences. And I’d like you to consider your own EXP experiences.

What can you personally do to contribute to improving EXP in your organization?

Years ago in London, I was fortunate enough to join a pioneering group of idealists and grow a group of
companies that, for many, opened up new possibilities for creating the ideal work environment. In my book, the following elements are key to generating an engaging employee experience. An inspiring leader with an inspiring vision, a psychologically safe workplace, with its cousin a ‘feedback culture’, trust, and fun! It felt great to be part of a community. And what excited me was the fact that we were always expanding and not contracting.

Our vision was no less than the transformation of society through business. The fun element was in
particular an example of a joyous EXP. We staged costume parties and banged a large Tibetan gong to
herald the start of the day’s work and then straight after lunch. Perhaps the most outrageous fun adventure was, for three consecutive years, chartering jets, closing the companies and flying off to Morocco, Turkey, and Egypt with staff, friends, and family.

But while this may sound rather idyllic, two aspects of EXP I listed above prevented this experience from
being stellar. In fact, they put a dampener on what could have been exceptional. Unfortunately large, over-controlling egos created an environment where many were afraid to speak out and express themselves freely.

In 1999, the highly esteemed Professor Amy Edmondson coined the term “psychological safety” to describe the lack of interpersonal fear. It’s about creating a space where people feel comfortable being
themselves—where they can express themselves honestly, and make mistakes without fear of being
shamed or blamed. Ironically that charismatic leader with an inspiring vision set the tone and did nothing to dispel the internal politics and tensions that arose. When it came to psychological safety and trust there was much to be desired. Most people were scared or in awe of the Chairman and his close lieutenants.

In a company where psychological safety is a reality, it is possible to create a culture of feedback. Trust and comfort are there to facilitate timely and constructive interpersonal feedback. If only everyone in that
company in London had a ‘voice’, as Amy Donaldson puts it, it might have been possible to largely eradicate the fear of taking interpersonal risks. Things can change if, as they say, you speak ‘truth to power.’

Finally, perhaps the number one determinant of EXP is the relationship between the employee and his/her immediate manager. In my case, I reported to a Managing Director who kept me at a distance and was very cold towards me. Needless to say, I always felt uncomfortable, tense, and inauthentic around her.

This went on for two years. If FEELING is an excellent indicator of EXP then I felt bad in her presence throughout this period. Interesting that a few years later she apologized for her behavior.

Needless to say, during this period, my performance suffered as my energy was suppressed and my
contribution to the team effort diminished dramatically. A leader’s job is to minimize fear and instill
confidence in her team. Interestingly my manager had a great relationship with a colleague of mine and he flourished under her leadership producing great results. This case is an example of how, early on, an open and honest exchange of feedback would likely have completely changed the dynamic of our relationship and enabled me to bring my whole self to the workplace.

Every organization should create its own culture and EXP according to its nature and circumstances. Not
many companies are willing or able to fly their staff to some exotic holiday location! But how we behave
towards others will largely determine the quality of the employee experience. And that’s a universal truth.

Michael Banks
February 2023
.
.
.
.
.
If you want to know more about PeopleSmart and the services we offer reach out to us for a conversation:
contact@peoplesmart.fr

Why is Bold Leadership more important now? In these difficult times people and organizations have a tendency to withdraw, become defensive and risk averse. It is essential that leaders, and indeed you and I, are willing to make bold decisions that allow everyone to move forward despite this inertia and fear ridden environment.

But let’s not confuse bold with reckless. In the face of a crisis, some people have a panicky knee jerk reaction. A good example was the recent budget presented by Prime Minister Truss of the UK. In attempting to be the heroic and courageous savior of the nation she was effectively committing hari kari. Her budget was ill considered and impulsive and consequently, she lost her job. 

For the sake of this article, we can assume that a bold leader is someone who is looking to make a positive impact in the world. A bold leader can emerge in any walk of life. Bold leadership is a type of skill and can be developed. It needs a blend of careful preparation and planning mixed with audacity, imagination, and risk taking. It is not about Impetuous decisions that are selfish and inconsiderate of their impact on others.

You do not have to be loud or Superwoman to be a bold leader. People love authenticity and a bold approach can be inspiring and motivating especially during these challenging times. A bold leader is typically someone who is exciting to be around and has a vision that captures the imagination and gives meaning to the work of the team or organization.

Are you a bold leader? Do you aspire to be one? Here are some suggestions for you to consider:

• In the best sense, you mustn’t care about what others think. When you stick your neck out you should expect some ‘flak’. At the same time, one needs to remain calm, balanced, and respectful in responding to the naysayers. Don’t seek others’ approval or pursue strategies just to please people. Be strong in your beliefs about what is the right thing to do.

• Self-awareness is crucial. Be aware of how limited you are by history, both personal and otherwise. Then you can choose an alternative future. Timid leaders tend to say “That’s not possible because … (what has occurred to date) while bold leaders typically are not prevented by existing beliefs or history from imagining and creating new solutions.

• Mindset: Comfortable with discomfort. It ‘comes with the territory’ A bold leader is inevitably constantly testing the limits and moving beyond his or her comfort zone. 

Apart from these aspects of self-management, the following are some characteristics that typically indicate a bold leader:

• Keep the faith over time and provide hope to others 
• Creates something that didn’t exist before
• Willing to challenge the status quo
• Risk taking and open to failure
• Courageous
• Imaginative
• Acts on behalf of the ‘whole’ versus ‘self’

Reflection Exercise: what one or two items from above would you like to improve and why?

And then there’s the mystical/spiritual aspect of bold action. 

Have you ever been faced with a ‘blank’ future – maybe a divorce or a loss of a job? And then your only choice is to take a risk and jump into the unknown. This takes courage and a trust that you will land somewhere! Even better if you have identified your purpose and are willing to commit to a path that represents fully who you really are.

There is a clear connection between being committed and being bold. When you commit you put a stake in the ground which takes courage because you are publicly stating your intention and cannot hide.

This is one of my all time favorite quotes and I think it’s a good way to finish this short collection of ideas. You may have seen it before but please take a moment to reflect and relate to your own life.

“Until one is committed, there is hesitancy, the chance to draw back. Concerning all acts of initiative (and creation), there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then Providence moves too. All sorts of things occur to help one that would never otherwise have occurred. A whole stream of events issues from the decision, raising in one’s favor all manner of unforeseen incidents and meetings and material assistance, which no man could have dreamed would have come his way. Whatever you can do, or dream you can do, begin it. Boldness has genius, power, and magic in it. Begin it now.” – W.H. Murray

Reflection Exercise: think of two real-life bold leaders you admire. What makes them bold?

My examples are:

1. Anwar Sadat who risked his life to travel to Israel in 1973 to catalyze the Camp David peace accords

2. Sir Richard Branson who pivoted from selling discounted rock records to founding a major airline. This required vision and imagination.

What are yours?

 

Michael Banks 

February 2023

.

.

.

.

.

If you want to know more about PeopleSmart and the services we offer reach out to us for a conversation: contact@peoplesmart.fr